Wireless Federation

Portugal’s cable operator ZON Multimedia, plans to launch it’s mobile resale service at the end of October. It will be using the spare capacity on the network of Vodafone Portugal. ZON will concentrate on 1.5 million households, once who are using it’s cable TV services. According to ZON, it doesn’t aim to challenge any of the country’s cellular operators TMN, Vodafone and Optimus, but is trying to improve subscriber loyalty among its existing client base.

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Portugal’s telecom regulator Anacom launches a new tender to award a fourth national mobile operator licence in the 450-470 MHz frequency band.
The new entrant will have to compete with TMN, Vodafone and Optimus, and the MVNOs as well. The interested bidders need to submit their bids.
The interested bidders may include Zon Multimédia, AR Telecom, Cabovisão, Oni and CTT.

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TMN, Telecel Vodafone and Optimus is serving Portugal’s mobile market. Mobile penetration is above the EU average. Growth is driven by the popularity of using multiple SIMs. MVNO market is undeveloped, partly though network operators having their own low-cost schemes. However, further competition in this sector is expected. TMN continues to enjoy higher profitability than Vodafone.

Notable highlights of  Portugal Mobile Forecast include:

• The wireless market in Portugal will be growing somewhat slowly compared to many other European countries.  Number of total subscribers will increase from our projected 14.7 million in 2008 to a forecasted 15.1 million in 2010. In 2010, the wireless penetration level in the country will reach 139.8%.

• Market shares (by subscribers) of the two largest operators will remain roughly the same over the next few years in Portugal. TMN, Telecel Vodafone and Optimus will continue to have approximately 44%, 35% and 20% of total subscribers respectively over the next three years.

• TMN will continue to be more profitable than Telecel Vodafone, and we forecast that its EBITDA margin will be 43.2% in 2010. On the other hand, the EBITDA margin of Telecel Vodafone will continue to remain low at 35%.

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Portuguese mobile operator TMN and the Porto Football Club have presented a new prepaid mobile service. The Dragao Mobile service offers calls to all networks at EUR 0.16 per minute and SMS at EUR 0.08 each, as well as personalised services for club members and fans. The club’s name will be shown on the handset display, and users will benefit from exclusive content. Customers will also get 5 percent of the value of each top-up returned to their bank account for use on FC Porto products and services. The package includes a EUR 10 card and a Motorola W218 mobile phone for EUR 59.90.

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Portuguese mobile operator TMN has selected Opera Mini as its default web browser for its mobile internet service. The Norwegian-developed browser will be available as a free download for TMN customers and will be delivered pre-installed on some of TMN’s handsets.

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Telegeography writes…Reports from Portugal suggest that Sonaecom will consider a merger with the country’s second largest cellular operator Vodafone if it fails with its current takeover bid for Portugal Telecom (PT). Diario Economico claims that Sonaecom is also considering other alternatives, including switching its focus to PT’s cable unit PT Multimedia or its mobile subsidiary TMN. Sonaecom has offered EUR10.50 per share for PT, with the offer closing at the end of next week.

Meanwhile, AFX reports that Sonaecom is prepared to match any dividend package that has been offered by PT to its shareholders as both companies try to win support for their respective strategies. PT shareholders are meeting tomorrow to decide whether to increase the 10% voting rights limit; a decision to keep the limit would mean an end to Sonaecom’s takeover battle. Sonaecom is the sole owner of Portugal’s third largest cellular operator, Optimus.

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Telegeography writes…Portugal Telecom has seen a 4.7% fall in fourth-quarter revenues to EUR1.64 billion (USD2.13 billion) due to poor performances at both its wireline and wireless business units. The fixed line division reported a 6.5% drop in sales to EUR505 million following a decrease in traffic as well as growing competition, while mobile subsidiary TMN saw a 2.7% fall in sales to EUR387 million on the back of lower handset sales and reduced call termination rates. One positive note came from the cable division PT Multimedia, which saw a 12.4% year-on-year rise in fourth quarter revenues to EUR177 million thanks to an increase in pay-TV customers and improved usage rates.

The group’s fourth-quarter EBITDA grew 3.9% to EUR738 million, while falling financial expenses and a good performance at PT’s Brazilian mobile venture Vivo helped push net income up 15.8% to EUR340 million. PT had just over four million local telephone lines in service at the end of December, down from 4.36 million twelve months before, while ADSL subscriptions were up by 100,000 over the year to 685,000. TMN, meanwhile, added 211,000 net new subscribers in the final three months of 2006 to reach 5.7 million, with ARPU falling 4.7% to EUR17.2. PT is currently the target of a EUR11 billion takeover bid by rival Portuguese telco Sonaecom.

Wireless Mobile Telecom 

Groove Mobile has inked a deal with TMN Portugal, a Portugese mobile service carrier, to provide music on subscribers’ mobile phones.

Bedford, Mass.-based Groove said the deal with TMN will add 5 million subscribers to their global reach, for a total of 81 million mobile phone subscribers worldwide.

Groove’s largest customer is Sprint Nextel Corp. ( NYSE: S ). The service Groove provides allows subscribers to download songs to their cellphones for a fee.

Source- http://boston.bizjournals.com

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